Gold firmed on Wednesday as the U.S. Federal Reserve delivered a widely expected rate hike and signaled a pause in further increases.
Spot gold was last 1.13% higher at $2,039.0168 per ounce after touching its highest since April 14 at $2,036.15 earlier.
U.S. gold futures settled up 0.7% at $2,037.
The Fed raised interest rates by a quarter percentage point to quell the inflationary pressures that have kept price rises well above its 2% target.
It also signaled a pause in further increases, giving officials time to assess the fallout from recent bank failures, wait on the resolution of a political standoff over the U.S. debt ceiling, and monitor the course of inflation.
"Gold snapped to the day's highs on reflex after the Fed statement indicated a pause but that was largely expected and bullion has now retraced, waiting for (Fed Chair Jerome) Powell," said Tai Wong, an independent metals trader based in New York.
After the Fed's decision, the U.S. dollar index fell 0.6%, making bullion more expensive for buyers holding other currencies, while benchmark 10-year Treasury yields also lowered.
U.S. interest rate futures priced in a pause in Fed's tightening at the June and July policy meetings, according to the CME's FedWatch tool.
Non-yielding bullion, a customary safe haven against inflation and economic uncertainty, draws lower demand when higher interest rates boost returns on competing assets with yields.
Traders now looked to Powell's press conference at 2:30 p.m. EDT for more cues.
"Concerns regarding U.S. regional banks and the debt ceiling suggest further price volatility is in the offing," said Standard Chartered analyst Suki Cooper.
Gold prices had gained 1% in April as the U.S. banking crisis spurred a flight to safety.